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1. Firm has identified and assessed the risks of money laundering and terrorism financing at office level (as referred to in art. 2b Wwft). This Wwft policy is aligned with the results of this risk analysis (as referred to in art. 2c Wwft).
2. In identifying and assessing the risks, the risk factors related to the notarial profession in general, the specific aspects of firm, the type of client (including private or corporate), the nature of practice (family law practice, real estate practice and corporate law practice) and the type of services (the possible services within the different practice areas) were taken into account. Consideration was also given to the countries and geographical areas that firm faces in practising (both in terms of client's residence, place of business or registered office and the work to be performed).
3. The indicators applied to assess risk sensitivity were primarily derived from the Wwft, Appendices I, II and III to the Fourth Directive and the Specific Guideline of the BFT, including Appendix 1. In addition, account was taken of the General Guideline of the MoF, the Note of the BFT, the KNB Handbook, the KNB Handvatten cliëntonderzoek (Handles for client investigations) and the Other publications KNB .
The FATF's Red Flags, indicators from the FATF report ‘Concealment of Beneficial Ownership’ (2018) and FATF Guidance for a Risk-Based Approach Guidance for Legal Professionals (2019) were also included. Moreover, the risk analysis includes the risk factors identified in the latest versions of the National Risk Assessment (NRA).
1. This Wwft policy consists of policies, procedures and measures relating to compliance with the provisions referred to in Section 1.2, Chapter 2, Section 3.2 and Chapter 5 of the Wwft.
These provisions are attached to this Wwft policy as an annex ‘Extract of regulations Wwft’.
Broadly speaking, the Wwft officer's duties include: implementing the Wwft policy and the related internal procedures and measures, creating awareness in practice of the purpose of the Wwft and the relevance of complying with the Wwft policy correctly, monitoring the effectiveness of the procedures, keeping the know-how in the field of the Wwft up to date in order to keep the policy and procedures up to date and providing training for employees. The Wwft officer is the first point of contact for employees in case of questions about the implementation of the Wwft policy (without prejudice to the provisions in the Wwft policy on consultation with or required approval from the Wwft responsible party).
2. For the correct and effective application of the regulations in the context of customer due diligence, it is important to recognise the different phases in customer acceptance. The following stages are taken as a starting point: -
Phase I the orientation phase (Art. 1a(5) Wwft);
Phase II preliminary risk analysis (aligned with the results of the risk analysis at branch level, using the distinction normal, high and low risk profile) + Wwft client information (art. 34a Wwft) + reservation to complete client due diligence for client acceptance.
Phase III client screening, tailored to the preliminary risk profile of client (using the distinction between normal, enhanced and simplified client screening);
Phase IV after complete customer due diligence: client acceptance decision (entering into business relationship) + recording client risk profile in file.
Phase V monitoring at file level, aligned with customer risk profile (keeping customer due diligence results up to date and, if necessary, investigating source of funds used in transaction).
3. Given the nature of the services provided by the notarial profession in general, it cannot be excluded that there may be a business relationship or transaction which, by its nature, may entail a higher than normal risk of money laundering or terrorist financing. However, such risks should be limited as much as possible. Given the public function, social responsibility and position of trust of the notarial profession, the office's Wwft policy is aimed at preventing, as much as possible, violations of a well-functioning legal system. As a result of the risk analysis at office level, office has formulated the following risk categories, which can be used to determine the client's risk profile at file level.
Firm has concluded with regard to a number of risks that firm, given its nature, size, expertise and insufficient measures to adequately manage the relevant risks. Firm therefore takes as its starting point that in a number of cases, in principle, no business relationship can be entered into or transaction performed (on the understanding that in all cases, under the ministerial duty of section 21(2) Wna, it will have to be assessed whether denial of service is permitted).
Mandatory enhanced scrutiny (art. 8 Wwft) The objective indicators for client screening of art. 8 and art. 9 Wwft, the objective indicator for the duty to report as referred to in art. 15 paragraph 1 Wwft and included in the Appendix UB Wwft and the indicators included in Appendix III Fourth Directive (art. 8 paragraph 2 Wwft) are considered by the firm as indicators that point to an increased risk. In the presence of one or more of these indicators, a mandatory enhanced investigation takes place. The intensified investigation consists of additional measures that are tailored to the specific risks so that they can be effectively managed. These are detailed in the Client Screening Procedure.
Given the risks identified at the office level, heightened scrutiny is additionally carried out in the following cases due to the increased risk mentioned therein:
Enhanced scrutiny can only be omitted in these cases if it is substantiated at file level why that choice is justified. In case of doubt, the Wwft officer is consulted. The enhanced due diligence consists of additional measures tailored to the specific risks so that they can be effectively controlled. These are detailed in the Client Screening Procedure.
Simplified examination (art. 6 Wwft) Firm adopts the principle that simplified client examination can only (without prejudice to the obligations under the Wna) take place in relation to the Dutch government and Dutch public companies, provided that at file level (i) there is a reduced risk of money laundering and terrorist financing; and (ii) it is substantiated that the choice for a simplified examination is justified. The obligation to monitor at file level and the duty to report apply without prejudice.
In principle, the other business relations and transactions qualify as business relations and transactions with an ‘ordinary risk’ with the consequence that ordinary customer research is conducted, unless there is an increased risk at file level. The indicators included in the Client Screening Procedure are used to assess whether there may be an increased risk in the risk analysis at file level.
For further details, please refer to the Client Screening Procedure.
Office keeps the results of the office-level risk analysis updated. The reason for an update may be internal changes, such as a change in nature of clients, a shift in the type of services provided, the composition of office and so on. The reason for an update can also be external changes, such as an updated national risk analysis, a change in Wwft regulations or a change in indicators. The Wwft manager and the Wwft officer jointly update the risk analysis at office level at least once a year (and, for that matter, as often as there is reason to do so). This is detailed in the Compliance Regulations.
2. Wwft policy
Office aligns the Wwft policy (if necessary) with adjustments in the risk analysis at office level. The Wwft officer also keeps track of developments in the field of Wwft in order to keep the Wwft policy up to date. Furthermore, the policies, procedures and measures are systematically tested for effectiveness in practice and, depending on the result, adjusted if necessary. This is detailed in the Compliance Regulations.
3. Monitoring file level
The data collected as part of the client due diligence (and the data collected to determine whether a simplified client due diligence could be conducted in relation to a client) are kept up to date at file level. The person handling the file is the first designated person to ‘monitor’ the file. This is detailed in the Client Screening Procedure.
The Wwft obliges institutions subject to Wwft to record and retain data, information and document gathered in the course of client due diligence. All data must be kept in an accessible and retrievable manner for a period of five years from the time the business relationship or transaction ends.
Reports of unusual transactions should also be kept for five years after the unusual transaction is reported.
At least the following data should be recorded in a retrievable manner:
Misuse of the trust account must be prevented. Unusual money flows that do not go through the third-party account must also be recognised as they may indicate an unusual transaction that needs to be reported. This Wwft policy provides a Wwft Money Transaction Handbook that can be used in practice.
